Report shows bills run lower in OKC than in other cities
This article originally appeared on The Journal Record
An examination of cost-of-living considerations ranging from average mortgage payments made to rates paid for car insurance has shown that household bills in Oklahoma City run less than they do in other large cities across the country, though bills in OKC typically consume a larger percentage of household income.
An analysis of household bills paid monthly by Americans was conducted by doxo, a third-party online bill payment website. It concluded that the average American household spends $2,046 each month on bills. In OKC, however, monthly expenses typically run closer to $1,800.
While Oklahoma City earned a ranking among the most affordable cities for bills, along with Albuquerque, Dayton, Cleveland and Detroit, San Jose, California, took the top spot as the most expensive. There, residents must pay an average of $3,504 per month covering normal household expenses.
It’s important to consider, though, the percentage of household income that must be dedicated to covering bills, doxo said.
According to a release, doxo analysts considered the most common household bills, including: mortgage payments; rent; auto loan payments; bills for utilities such as electricity, gas and water; vehicle insurance costs; costs for cable, internet and phone service; health insurance consumer costs; costs for mobile phone service, alarm and security service bills; and life insurance premium costs.
“Through doxoINSIGHTS, we are able to provide consumers, businesses, and financial institutions alike with access to the broadest and most transparent data available on actual household spending for the most common bills,” said Liz Powell, who helped to direct the analysis. “Uncovering household bill spend on a city-specific level provides consumers with the information and tools they need to improve their financial health. Additionally, this data allows the service providers and financial institutions that serve them to better align with their needs, which is more crucial now than ever amid dampened consumer confidence in the economy.”
In Oklahoma City, monthly household expenses typically consume about 40% of household income, the study found. Though bills run higher in San Jose, it found that households there can usually cover them by dedicating just 35% of household income. The average U.S. household spends about 35% of income on such bills.
In Boston, where monthly expenses run about $3,369, doxo found that typical households must dedicate 57% of household income to covering bills. Other large, more expensive cities include New York; San Francisco; Washington D.C.; San Diego; Seattle; Los Angeles; Miami; and Portland.
Least expensive cities for bills include St. Louis, Memphis, El Paso, Tucson, Rochester, Oklahoma City, Albuquerque, Dayton, Cleveland and Detroit.
Findings show that cities in the Midwest are some of the least expensive as far as bills go. Detroit residents pay the least in average monthly expenses, at $1,571, which is 23.2% less than the national average. However, they do typically have to dedicate 58% of household income to covering bills, doxo noted.